BUFFALO, N.Y., July 18, 2024 -- M&T Bank Corporation ("M&T" or "the Company") reports quarterly net income of $655 million or $3.73 of diluted earnings per common share.
(Dollars in millions, except per share data) | 2Q24 | 1Q24 | 2Q23 | |||
Earnings Highlights | ||||||
Net interest income | $ 1,718 | $ 1,680 | $ 1,799 | |||
Taxable-equivalent adjustment | 13 | 12 | 14 | |||
Net interest income - taxable-equivalent | 1,731 | 1,692 | 1,813 | |||
Provision for credit losses | 150 | 200 | 150 | |||
Noninterest income | 584 | 580 | 803 | |||
Noninterest expense | 1,297 | 1,396 | 1,293 | |||
Net income | 655 | 531 | 867 | |||
Net income available to common shareholders - diluted | 626 | 505 | 841 | |||
Diluted earnings per common share | 3.73 | 3.02 | 5.05 | |||
Return on average assets - annualized | 1.24 % | 1.01 % | 1.70 % | |||
Return on average common shareholders' equity - annualized | 9.95 | 8.14 | 14.27 | |||
Average Balance Sheet | ||||||
Total assets | $ 211,981 | $ 211,478 | $ 204,376 | |||
Interest-bearing deposits at banks | 29,294 | 30,647 | 23,617 | |||
Investment securities | 29,695 | 28,587 | 28,623 | |||
Loans and leases, net of unearned discount | 134,588 | 133,796 | 133,545 | |||
Deposits | 163,491 | 164,065 | 159,399 | |||
Borrowings | 16,452 | 16,001 | 15,055 | |||
Selected Ratios | ||||||
(Amounts expressed as a percent, except per share data) | ||||||
Net interest margin | 3.59 % | 3.52 % | 3.91 % | |||
Efficiency ratio | 55.3 | 60.8 | 48.9 | |||
Net charge-offs to average total loans - annualized | .41 | .42 | .38 | |||
Allowance for credit losses to total loans | 1.63 | 1.62 | 1.50 | |||
Nonaccrual loans to total loans | 1.50 | 1.71 | 1.83 | |||
Common equity Tier 1 ("CET1") capital ratio (1) | 11.44 | 11.08 | 10.59 | |||
Common shareholders' equity per share | $ 153.57 | $ 150.90 | $ 143.41 | |||
(1) June 30, 2024 CET1 capital ratio is estimated. |
Financial Highlights
- Highlighting the Company's strengthening capital position, the CET1 capital ratio increased for the fifth consecutive quarter to an estimated 11.44% at June 30, 2024, representing a 36 basis point increase from 11.08% at March 31, 2024.
- Net interest margin of 3.59% in the recent quarter widened from 3.52% in the first quarter of 2024 reflecting higher yields on investment securities as cash was deployed to those products, and stable deposit and borrowing costs.
- Growth in average commercial and industrial loans and consumer loans in the recent quarter was partially offset by a decline in average commercial real estate loans.
- Average customer deposits grew as funding shifted from wholesale sources to lower cost customer savings and interest-checking deposits during the recent quarter. Average borrowings rose in the second quarter of 2024 as compared with the first quarter of 2024 due to the issuance of senior notes and asset-backed notes at the end of the immediately preceding quarter, partially offset by lower average borrowings from the Federal Home Loan Bank ("FHLB") of New York.
- Provision for credit losses in the recent quarter reflects lower levels of criticized commercial real estate loans, partially offset by commercial and industrial and consumer loan growth.
- Lower noninterest expense in the second quarter of 2024 reflects seasonal salaries and employee benefit expenses recognized in 2024's initial quarter. The first and second quarters of 2024 include a $29 million and a $5 million estimated increase in the FDIC special assessment, respectively.
Chief Financial Officer Commentary
"Building on a strong start to the year, the second quarter results reflect a 24% increase in diluted earnings per common share from the first quarter. We continued to grow our commercial and industrial and consumer loan portfolios, while lessening our commercial real estate exposure. Credit metrics improved as both nonaccrual and total criticized loans declined sequentially. Liquidity and capital positions are exceptional, and we are pleased with the reduction in our stress capital buffer that becomes effective later this year. Our team continues to diligently deploy resources while controlling expense growth. We are grateful for our employees' commitment to our customers and communities which was again on full display in the first half of 2024 through various community events and volunteer engagements throughout our footprint."
- Daryl N. Bible, M&T's Chief Financial Officer
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